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Day 6: Kalam quits Satyam NGO, PwC in trouble
January, 13th 2009

When former President APJ Abdul Kalam decided to become chairman Emeritus at the Satyam-funded NGO Emergency Management and Research Institute (EMRI), little did he know that he was associating himself with one of corporate India's biggest scandals.

Following the Satyam scam, Kalam has decided to resign.

Other top corporate leaders, including ICICI CEO, K V Kamath, CII Mentor Tarun Das and even former NASSCOM chief Kiran Karnik followed suit.

But while EMRI may survive the scam with most states deciding to continue with it, it's the Satyam auditors who are, facing trouble.

Regulator for chartered accountants ICAI's special committee will be formed on Tuesday to investigate the scam.

The group will give its report in a week.

The special committee will work in coordination with regulators - SEBI and RBI - as well as the Ministry of Corporate Affairs and share input with them, said ICAI president Ved Jain.

A show-cause notice has already been issued to Satyam auditors PwC. They have 21 days to reply.

In case they are found to be in gross negligence they will be barred from practicing for five years.

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